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US Sustainable Business Spending 2012-2017

Date: 04 June 2013

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42 pages, 21 Figures

Executive Summary

Verdantix Critical Moments® is a globally scalable model that sizes, forecasts and describes the direction of sustainable business spending. This report, focused on the US market, provides sustainability leaders in market-facing and corporate roles with analysis of sustainable business budgets, market size and forecast data. Built from publicly disclosed 2012 revenue data from 2,856 firms with revenues of more than $1 billion, the model finds that sustainable business spend will grow from $34.6 billion in 2012 to $43.6 billion in 2017. Between 2012 and 2017, US sustainable business expenditure will increase at a compound annual growth rate of 5%. Since 2008 the rapid growth in US shale gas production has arrested the rise in energy prices, dampening expansion of energy-related sustainability initiatives. Competitive dynamics and innovation diffusion remain drivers for energy, environment and sustainability spend. The analysis covers all sectors and sustainable business initiatives, from industrial energy management to sustainability R&D.

TABLE OF CONTENTS

CRITICAL MOMENTS® QUANTIFIES SUSTAINABILITY SPENDING

Defining And Sizing US Sustainable Business Opportunities
Decision-Makers Need A Rich Analytical Framework To Understand Spending
US SUSTAINABLE BUSINESS MARKET WILL BE WORTH $37.2 BILLION IN 2013
Spend On Sustainable Business Programmes Will Increase By 8% In 2013
Energy And Basic Resources Sectors Will Make Up 33% Of Sustainability Spend In 2013
Retail And Consumer Products Will Account For 27% Of Spend In 2013
Business And Financial Services Sectors Will Add 17% Of Sustainable Business Spend In 2013

INITIATIVE-LEVEL ANALYSIS SEGMENTS $37.2 BILLION MARKET OPPORTUNITY IN 2013

Energy Management Spend Will Reach $13.9 Billion In 2013
Investments In Environmental Performance Will Reach $13.1 Billion In 2013
Investments In Sustainability Strategy, Risk And Brand Will Hit $5.4 Billion In 2013
Investments In Sustainability Innovation Will Reach $2.6 Billion In 2013
$37.2 Billion Of Spend In 2013 Splits Unevenly Across Five Categories

US SUSTAINABLE BUSINESS SPEND WILL TOTAL $43.6 BILLION 2017

Economic, Market And Regulatory Factors Influence Sustainable Business Spending
Between 2012 And 2017 Sustainable Business Spend Will Grow By A CAGR Of 5%
Four Sustainability Initiatives Will Exceed 5% CAGRs From 2012 To 2017 Seven Sustainable Business Initiatives Will Register CAGRs Of 5% Embedded Sustainability Initiatives Show Lower Growth Rates

BUSINESS PLANNING MUST EXPLORE SUSTAINABILITY SCENARIOS

Analysis Identifies Key Sensitivities Influencing Sustainability Market Opportunities

TABLE OF FIGURES

Figure 1. Critical Moments® Supports Budgeting, Marketing Plans And Business Strategy
Figure 2. Critical Moments® Analysis Is Based On Financial Data For 20 Industries
Figure 3-1. Sustainable Business Spending Initiative Definitions
Figure 3-2. Sustainable Business Spending Initiative Definitions
Figure 3-3. Sustainable Business Spending Initiative Definitions
Figure 4. Firm-Level Maturity Assessments Define Three Levels Of Sustainability Spend
Figure 5. Market Segments Are Split Into Five Categories Of Spend
Figure 6. Average Spend Per Category For 29 Sustainable Business Initiatives
Figure 7. US Sustainable Business Market Opportunity 2012-2017
Figure 8. US Spend On Sustainable Business In 2013 By Industry ($m)
Figure 9. US Sustainable Business Market Opportunity By Initiative 2013 ($m)
Figure 10-1. Five Categories And 29 Initiatives Define Addressable Segments In 2013
Figure 10-2. Five Categories And 29 Initiatives Define Addressable Segments In 2013
Figure 11. US Sustainable Business Spend By Category In 2013
Figure 12. Critical Moments® Applies Economic, Market And Regulatory Drivers
Figure 13. CAGRs Of Spend On 29 Sustainable Business Initiatives 2012-2017
Figure 14-1. Market Forecast For Spend On 29 Sustainable Business Initiatives 2013-2017
Figure 14-2. Market Forecast For Spend On 29 Sustainable Business Initiatives 2013-2017
Figure 15-1. Year-On-Year Changes In US Spending On 29 Initiatives 2013-2017
Figure 15-2. Year-On-Year Changes In US Spending On 29 Initiatives 2013-2017
Figure 16. Sustainable Business Spending Growth Rates By Industry 2012-2017

ORGANIZATIONS MENTIONED

3M, AECOM, Air Products, Akamai Technologies, Alcoa, American International Group, Anglo American, Apple, Applied Materials, ARCADIS, AT&T, Bain Capital, Bank of America, Best Buy, BP, California Air Resources Board, CH2M HILL, Chevron, Citigroup, ConocoPhillips, Dell, Deloitte, Dominion Resources, Dow Chemical, Dow Jones, Duke Energy, DuPont, eBay, ECOtality, Endress+Hauser, EnerNOC, Entergy, Ernst & Young, ExxonMobil, FedEx, Ford, FTSE, General Mills, General Motors, GlaxoSmithKline, Hertz, Home Depot, International Monetary Fund, International Union for Conservation of Nature, Johnson & Johnson, Jones Lang LaSalle, JPMorgan Chase, Kimberly-Clark, Kohl’s, KPMG, Macy’s, McDonald’s, Microsoft, Molson Coors, Morgan Stanley, Navistar, Next Phase Solar, Ohio Environmental Protection Agency, PE International, PepsiCo, Pfizer, ProEnergy, Progress Energy, Rio Tinto, Rockwell Automation, Ross Stores, Safeway, Schlumberger, Shaw Group, Shell, Stanford University, Swiss Re, Target, Toyota, United States Steel Corporation, UnitedHealth Group, UPS, US Energy Information Administration, US Environmental Protection Agency, US Federal Reserve, US Securities and Exchange Commission, Verizon, Walmart, Waste Management Sustainability Services, Whole Foods Market, ZipCar.